Blackstone Increases its Offer in Pursuit of Crown Resorts Acquisition
The Australian casino company, Crown Resorts, finds itself with an enhanced proposition from the U.S. private equity firm, Blackstone. Already possessing a 10% share in Crown, Blackstone has elevated its bid to $9.55 per share, surpassing their prior attempt in November. This new figure places the valuation of the Australian gaming operator at a substantial $8.9 billion.
Following consultations with their counsel, the board of directors at Crown has indicated a willingness to engage in further dialogue with Blackstone. They perceive this recent proposal as potentially favorable tidings for those holding shares.
Certain stipulations do exist, however. Crown’s board will only consent if Blackstone presents a formal agreement at this revised price or one exceeding it. Additionally, they seek assurance that any arrangement encompasses conditions they deem satisfactory and, naturally, advantageous to their shareholders. The possibility of a superior offer emerging from another entity remains a factor.
Blackstone’s initial offer in November, along with its updated proposition, operates under identical stipulations. These encompass concluding due diligence, securing full backing and endorsement from Crown’s directors, and acquiring regulatory consent from gaming authorities in Victoria, New South Wales, and Western Australia.
Currently, there’s no assurance that these dialogues will yield a change-in-control agreement or that any presented bid will satisfy Crown’s investors.
Crown’s leadership remains dedicated to optimizing shareholder worth and will meticulously evaluate any proposition that aligns with this goal.
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